A leading property-casualty insurance trade organization recently released a policy paper that said more study is needed before creating state and/or federal funds to shore up the insurance industry after a mega-catastrophe.
An official of the National Association of Mutual Insurance Companies said it is too soon for a decision on whether a state and federal funding system for big weather disasters is needed. NAMIC's call for more study noted that an event comparable to the 1906 San Francisco Earthquake could “test or exceed” the capacity of the private marketplace to provide adequate coverage.
“This would be particularly true where some insurers could potentially be unable to meet their claim obligations and still offer protection going forward,” the statement said.
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